The Association of Insurance and Risk Managers (AIRMIC) has lobbied the European Commission in the hope UK insurers will continue to benefit from a block exemption to certain European competition rules.

The exemption allows insurers to share policy wordings and some administrative arrangements when co-writing large risks.

The Directorate General for Competition is investigating whether to allow the practice to continue when it expires in 2010.

In a submission the AIRMIC argues that the exemption encourages competition by making it easier for new players to enter the market for large insurance programs.

The group argues the arrangement benefits buyers because it promotes consistent policy terms.